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Fannie Mae won’t evict renters

Tenants of foreclosed homes can stay if up to code

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Fannie Mae will allow qualified renters to sign month-to-month leases and stay on in homes it forecloses on -- without requiring a security deposit, credit check or payment history -- while it markets the homes for sale. The new National REO Rental Policy is intended to limit the disruption to the lives of renters when their landlord is foreclosed on, and "bring a measure of stability to communities impacted by high foreclosure rates," said Fannie Mae Chief Operating Officer Michael Williams in a statement. Freddie Mac is reportedly developing a similar policy. Fannie Mae's program applies only to renters -- not the owner of the property or their immediate family -- and requires that homes meet state laws and local code requirements for a rental property. All types of single-family property are eligible for the program, including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. Properties with loans insured by ...